Assume that you are given the following partial, covariance and correlation tables from historical data. Also assume that the average return on the market was 14.40 percent and that its coefficient of variation was 0.25. Now assume that for the coming year, the expected return on the market is 15.0 percent and that the risk-free rate is expected to be 4.0 percent. Given this information, determine the required rate of return for security J for the coming year.

Covariance matrix Security J and K have empty columns. Market is 0.0007488 for J. Market is 0.0013824 for K. Then the market horizontal column security J has 0.0007488 and K has 0.0013824.

The Correlational Matrix securities J is1.0 and security J & K is .60 and Sec. J and Market is .40.

" K and J is .60 and " k & K is 1.00 and K& market is .80

" Market and J is .40, market and K is .80, market and market is 1.00